Ericsson AB, one of the world’s largest telephone equipment makers, is in talks to acquire Ascend Communications Inc. or another computer-networking company, sources said Wednesday.
Ericsson wouldn’t comment on specific acquisition targets. The company “is very interested in data networking companies,” said Ericsson’s vice president for corporate communications, Kathy Egan. Alameda, Calif.-based Ascend declined to comment.
The Swedish telecommunications company wants to acquire a U.S. networking company after talks with Bay Networks Inc. failed, the source said. Earlier this week, Northern Telecom Ltd. agreed to buy Bay in a transaction now valued at $7 billion.
While Ericsson has strong European sales, the company doesn’t sell many data networking products and has a small U.S. customer base. Buying Ascend could fill both gaps.
